Weekly Market Recap At this week's Federal Reserve (Fed) meeting, rates were held steady and the Fed saw the US economy continuing to expand at a "moderate pace" with "strong jobs gains" somewhat offset by "soft" US investment and exports. In the EU, industrial production for January saw its best growth since September 2009. One potential mistake we believe you can make with your investments is to hold too much of an individual stock, especially the stock of your employer. Financial and statistical research has demonstrated in our view that holding smaller investments in a larger number of stocks can offer a better risk/return trade-off than concentrating your investments in a single stock. Furthermore, if you're holding a large amount of stock in your employer, the risk may be greater because your income and career prospects may be linked to the fortunes of your investment portfolio, meaning your overall income is subject to potentially greater risk than with a more diversified portfolio. We believe broad-based Exchange Traded Funds (ETFs) can offer a good option for diversification because many hold thousands of individual stocks or bonds within a single ETF. Then we see an additional level of benefit coming from diverse asset classes used in portfolio construction. Just as holding a large number of stocks can lower risk relative to anticipated return, so holding different asset classes and taking broad geographical exposure has the potential to smooth returns over time. For example, stocks and government bonds have historically offered a portfolio hedge when held together as they can, at times, move in different directions. So we believe diversification is a key tenet of financial theory and ETFs and diverse asset classes are important to achieving it. Notes:
Federal Reserve Statement:
https://www.federalreserve.gov/monetarypolicy/files/monetary20160316a1.pdf
EU Industrial Production:
http://www.bbc.com/news/business-35803181 Disclaimer:
The views expressed are for informational purposes only and are not intended to serve as a forecast, a guarantee of future results, investment recommendations or an offer to buy or sell securities by FutureAdvisor. All expressions of opinion are subject to change without notice in reaction to shifting market, economic political conditions, and as subsequent conditions vary. The investment strategies mentioned are not personalized to your financial circumstances or investment objectives, and differences in account size, the timing of transactions and market conditions prevailing at the time of investment may lead to different results. This material may contain "forward-looking: information that is not purely historical in nature. Clients may lose money. Past performance is not indicative of future results. Investments in securities involve the risk of loss. Any tax strategies discussed should not be interpreted as tax advice and do not represent in any manner that the tax consequences detailed will be obtained. Clients should consult with their personal tax advisors regarding the tax consequences of investing. Your Portfolio Summary | $9,354.41 Your Total Assets | Ways To Improve Your Portfolio | 0 Accounts with Actions | Your portfolio has no recommended actions right now. We'll watch over your investments and alert you with an email when there are actions for you to complete. Sign in to see detailed steps  | | Sign in to see your full dashboard | | 
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